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Resources for In-Depth Investigation

You have a lot to consider as you prepare to relocate or expand to Texas. We offer the following information to help you explore your opportunities.

Labor & Employment

Overview

If you contract with Texas workers, you may have labor, safety, and tax obligations. Some of the labor, safety, access, and new hire reporting regulations administered by federal and state agencies are outlined below.

Workers' Compensation

Workers' Compensation

One of the great advantages of doing business in Texas is the choice most employers have concerning whether or not to carry workers' compensation insurance. The Texas Labor Code makes workers' compensation insurance optional in two ways:

an employer can be self-insured (remaining under the rules and regulations of the workers' compensation laws but essentially acting as a self-insurer), or

becoming what is termed a "non-subscriber" – that is, doing without workers' compensation insurance entirely.

Employers of approximately one-third of the employees in Texas "opt out" of the system, choosing to either take on that entire risk or by purchasing an alternative type of insurance coverage and perhaps even establishing their own (sometimes better or higher) benefits for employees who are injured on the job. Some non-subscribers feel that the level of freedom and control is greater and some feel the benefits they can offer employees are superior outside the system. Some employers who opt out of the no-fault workers' compensation system, which is mandatory in every state except Texas, report a greater sense of conflict avoidance, internal control over fraudulent claims and the lack of government impositions. Others feel the risks are too great and choose to stay in the no-fault, state-controlled workers' compensation arena. You may wish to contact an attorney licensed in Texas for advice on these alternatives and the risks involved. Alternatively contacting the Texas Association of Responsible Nonsubscribers, the Texas Association of Business, the Texas Department of Insurance or the Texas Alliance of Nonsubscribers may be of assistance.

The Texas Workers' Compensation Commission publishes a new law guide, a quarterly newsletter, and an information brochure for employers to help them become more familiar with the basic requirements for workers' compensation in Texas. To request these publications, contact:

Equal Employment Opportunity

Equal Employment Opportunity

Federal and state laws prohibit employment discrimination. The United States Equal Employment Opportunity Commission (EEOC) and the Texas Workforce Commission ("TWC"), Human Rights Division are charged with enforcing laws which prohibit certain forms of discrimination, including discrimination on the basis of race, color, sex, religion, disability, age, or national origin. Employers with 15 or more employees engaged in an industry affecting commerce, employment agencies, and labor unions are prohibited from denying equal employment opportunities. Regardless of the number of individuals employed, a county, municipality, and any state agency or instrumentality including public institutes of education, are also prohibited from denying equal employment opportunities. The TWC, Human Rights Division will assist local governments in establishing human rights commissions and provide technical assistance and training to employers to facilitate compliance with laws prohibiting employment discrimination. The TWC, Human Rights Division has jurisdiction for investigating employment complaints in Texas. The EEOC promotes voluntary programs that allow employers and organizations to implement equal employment opportunity programs within their businesses. For information regarding federal equal employment requirements, contact:

Plant Closings

Plant Closings

The Worker Adjustment and Retraining Notification Act (WARN), Public Law 100-379 (29 U.S.C. 2101 et seq.), requires certain employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs (of employees subject to the Texas Unemployment Compensation Act). Notice must be made to either the affected workers or their representatives (e.g., a labor union), to the EDWAA Unit at TWC, and to the appropriate unit of local government. For more information or to request a copy of the WARN Act, contact:

Disability Resources

Disability Resources

Americans with Disabilities Act Requirements

The Americans with Disabilities Act (ADA) provides protection for people who have or have a record of having a disability in the areas of employment, public services and transportation, public accommodation, and telecommunications. The ADA also protects people who are regarded as having a disability. For more information on how the ADA may affect a business and for technical assistance with provisions applying to employment, contact:

The Texas Department of Licensing and Regulation reviews construction documents for the construction or substantial renovation, modification, or alteration of buildings or facilities defined as public or commercial accommodations for architectural barriers. This review is mandated through the Americans with Disabilities Act. For additional information on architectural barriers, contact:

Workplace Safety

Workplace Safety

The Occupational Safety and Health Consultations (OSHCON) program is administered by the Texas Department of Insurance, Department of Workers' Compensation. Professional safety and health consultants across the state are available to help identify and eliminate occupational hazards in your workplace, whether or not your company carries workers' compensation insurance. Free on-site safety and health inspections are available to alert the employer of possible federal Occupational Safety and Health Administration (OSHA) violations. Employers with fewer than 150 employees, who take advantage of the free inspection and meet the federal requirements, will be exempted from a scheduled inspection for 12 months. For more information regarding state occupational safety and health requirements, contact:

Wage Requirements

Wage Requirements

Federal and state laws regulate minimum wage, payment for overtime, scheduling of paydays and other wage and hour matters affecting employers in Texas. For information on federal minimum wage laws, overtime, and other questions regarding wages and hours, contact:

The Texas Workforce Commission is charged with investigating and notifying appropriate county and/or district attorneys regarding all labor law violations. The Labor Law Department is charged with the enforcement of state and federal labor laws as well as the prosecution of offenders of these laws. State statutes include the Pay Day and Child Labor laws. For additional information, contact:

Standards for apprenticeship training programs in Texas follow guidelines set forth by the U.S. Department of Labor, Bureau of Apprenticeship and Training. Specific details regarding these programs may be requested by contacting:

New Hire Requirements

New Hire Requirements

Effective October 1, 1998, in accordance with the federal Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, all Texas employers are required to report certain information on newly hired and rehired employees to the State Directory of New Hires.

To request an employee packet from the Texas Workforce Commission, contact:

Drug-Free Workplace

Drug-Free Workplace

Advice is available to Texas employers with 15 or more employees who maintain workers' compensation coverage. Employers must comply with certain drug-free workplace requirements, and are also subject to federal regulations. These federal regulations include the Drug-Free Workplace Act of 1988 and U.S. Department of Transportation regulations requiring drug and alcohol testing. For information, contact:

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